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Fed Chairman Jerome Powell, Stating that they will not increase the interest rate in the near future, he said: “We will not raise interest rates unless we see problems and imbalances in inflation.”
At an event hosted by the Bendheim Finance Center at Princeton University, US Federal Reserve (Fed) Chairman Jerome Powell said: “For the new inflation target to be credible, we must allow inflation to rise. above 2 percent for a time. “
Emphasizing that they do not depend on a specific formula for inflation to reach the target, Powell asserted that inflation dynamics do not change very quickly.
“There is an increase in expenses and an increase in prices”
According to the news in the Dünya newspaper, Powell said that one-time increases in prices do not mean permanent inflation, saying: “With the slowdown of the pandemic, you can see an increase in spending and an increase in prices.” .
Emphasis on “communication” in asset purchases
Noting that the economy is far from the bank’s goals, Powell said they are strongly committed to the goals and will use monetary policy tools to achieve them.
Powell said they are aware of the need to be very careful when communicating about asset purchases, noting that guidance on interest rates and asset purchases is determined by outcome, not time.
Powell stressed that they will be very transparent about reducing asset purchases. “We will communicate very clearly with the public and do so before actively considering phasing out asset purchases.” said.
